Sculpting the Stellar Cusp in the Galactic Center

Observations of the innermost parsec surrounding Sgr A$^*$ ---the supermassive black hole in the center of our Galaxy--- have revealed a diversity of structures whose existence and characteristics apparently defy the fundamental principles of dynamics. In this article, we review the challenges to the dynamics theories that have been brought forth in the past two decades by the observations of the Galactic center (GC). We outline the theoretical framework that has been developed to reconcile the discrepancies between the theoretical predictions and the observational results. In particular, we highlight the role of the recently discovered sub-parsec stellar disk in determining the dynamics and resolving the inconsistencies. We also discuss the implications for the recent activity of Sgr A$^*$.